I love short squeezes and typically look to profit from them as they happen. However, I don’t like to take a directional position through earnings but this is where some of the best squeezes can occur. Take Equinix, Inc. ($EQIX) as an example. This small cap technology company has been in a great trend since March and is approaching the $100 mark. The surprising thing is that the short ratio on this company is 17 and over 20% of its float is short.
Earnings are on the 21st of October after the close and the street is looking for and EPS of .29 and revenues of 83.7MM. Their historical beat rate is 68.2% on EPS and a whopping 95.5% on revenue. As I said, I have no position since I don’t take directional trades through earnings, but I will be on the sidelines watching to see what happens.